My mother had some work done at Gentle Dental (plate) which was financed through Capital One. The dentist was paid the full amount (by C1) and my mother was to make payments. Two months later she returned to the dentist because the plate needed adjusting and the dentist kept her teeth! (She had missed one payment at this point). Since she never got the teeth back she stopped paying. Flash to last month and she is receiving a demand letter from Health Care Recovery saying she owes $1800+. I sent a validation letter for her and explained that their collection efforts should be centered on the dentist, not my mother, since she received no value for the loan. They responded back yesterday saying they disagree and hold her responsible. They sent two pages of the three page contract, conveniently missing the page that says, "Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained withe the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor hereunder." To me that says HCR is responsible for going after the dentist. Am I correct? Additionally, this page states, "Applicable federal law and the laws of the state of Virginia govern this note including the rate of interest and fees." This debt is from 7/13/06 and Virginia's SOL is 4 or 5 years? I am thinking of writing a new letter stating the quote above and reiterating it's their responsibility as well as bringing up the SOL. Sound right? Sorry this was so long!
I would take that to mean that you could sue HCR if they PURCHASED the account, or C1. The amount of damages would be for the amount PAID. So your mother would have to file against the current owner of the account the amount that she had paid to C1, prior to losing the benefit of the goods purchased. Well, SoL would be a double edged sword, it would also bar any claims against C1/HCR for the amount lost by the non-performing doctor. So, I would personally sit on that tidbit. Of course the standard, I am not an attorney, don't play one on TV, and this isn't legal advice, just what I would do in this situation.
Your interpretation sounds more valid than mine. Bummer. She will not likely sue the dentist since she only made two payments before being laid off. So, she's out $125 plus the plate. How do I respond to HCR if not to reiterate go after the dentist or SOL? They claim they will "continue collection efforts until your balance is zero." Thanks
Well, she wouldn't be suing the dentist, she'd be suing C1 or their CA, for the $125.00 that she had paid since she is out the plate. Again, not providing legal advice, I would respond from the suit perspective (ok, I love the courts... Joshua said I had a strange definition of FUN... ).
And, yes, I really am (whatever word best describes it) enough to close with a "Have a great day, and a pleasure doing business with you!" or similar lines. In an ITS it does have a more sarcastic sound.
I sit at a keyboard and a suit just types itself. I would have loved to have been a fly on the wall of the local DoJ office when they got the answer to their motion, hours after I received it.
